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CMED News China Medical Completes Acquisition of Fluorescent in situ Hybridization (''FISH'') Business

BEIJING--(BUSINESS WIRE)--China Medical Technologies, Inc. (the "Company") (Nasdaq: CMED), a leading China-based medical device company that develops, manufactures and markets advanced in-vitro diagnostic systems and tumor therapy systems, today announced that it has completed its previously announced acquisition of a FISH business. The acquisition is expected to expand and diversify the Company’s existing product portfolio and complement the Company’s existing ECLIA diagnostic products by providing proprietary tests for the diagnosis of prenatal and postnatal disorders as well various cancers. The new business will further strengthen China Medical’s leading position in the rapidly-growing area of diagnostic testing in China.

The final consideration for the acquisition is US$136.8 million in cash with a further US$40.0 million that will be payable in cash or, at the Company’s option, shares in the Company, upon the achievement of certain operating and financial milestones. Among the milestones, the most important is that the business has to generate US$20.0 million in revenue from FISH products in the first year after closing. The Company expects that the FISH transaction will be earnings accretive in FY2008 and beyond. Further financial estimates on annual net revenues and net income for China Medical in FY2007 will be provided when the Company reports its annual financial results for FY2006.

About China Medical Technologies, Inc.

China Medical Technologies, Inc. is a China-based medical device company that develops, manufactures and markets advanced in-vitro diagnostics products using enhanced chemiluminescence immunoassay (“ECLIA”) technology to detect and monitor various diseases and disorders and high intensity focused ultrasound (“HIFU”) tumor therapy systems for the treatment of solid cancers and benign tumors. For more information, please visit www.chinameditech.com.

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the quotations from management in this press release, as well as China Medical's strategic operational and integration plans, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including risks related to China Medical’s ability of successfully commercialize the products utilizing the FISH technology and launch products in China or elsewhere in a timely manner. Further information regarding these and other risks is included in China Medical’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. China Medical does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.